The 10-second takeaway
For the quarter ended June 30 (Q2), BroadSoft beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.
Margins contracted across the board.
BroadSoft logged revenue of $40.5 million. The 12 analysts polled by S&P Capital IQ foresaw a top line of $37.6 million on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $32.2 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.33. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.21 per share. GAAP EPS of $0.08 for Q2 were 86% lower than the prior-year quarter's $0.57 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 80.8%, 60 basis points worse than the prior-year quarter. Operating margin was 13.8%, 370 basis points worse than the prior-year quarter. Net margin was 5.8%, 4,330 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $41.0 million. On the bottom line, the average EPS estimate is $0.31.
Next year's average estimate for revenue is $165.0 million. The average EPS estimate is $1.39.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 39 members out of 126 rating the stock outperform, and 87 members rating it underperform. Among 38 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), six give BroadSoft a green thumbs-up, and 32 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BroadSoft is outperform, with an average price target of $41.20.
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